1) US Government is Preparing for the 2010 FRN collapse. (written 2006)
2) Bi-Currency Doom and Gloom (2006)
3) Anglos Rule The Bi-Currency World (written 2006)
US Government is Preparing for the 2010 FRN collapse. (written 2006)
Being a true blooded Yankee, and only using Federal Reserve Notes (FRNs) in my daily life, I have been to Russia many times, and am struck how banks there allow one to deposit Euros, USDs, and Rubles in accounts designated in such denominations, something I can not readily do at my USA Well Fargo bank. When depositing and withdrawing these fiat moneys in Russia, one can effectively trade currencies by a simple trip to the bank, or a curb side stop. I am amused there by the hoards of street money changers virtually on every corner, vigorously shaking their Rubles in advertisement for swapping Rubles for US Dollars. I never see such events on the streets of Laguna Beach California, nor else where in the good old USA.
When the federal reserve reduced interest rates in the 2001 time frame to pump up the economy, as the exchange rate dropped, the Russians, remembering several collapses of Ruble, were very concerned, as the USD had been for years their safe haven of choice for monetary wealth preservation. I said it was a result of interest rate decreases. Not understanding USA monetary policy by common Russians, they listened to me very intently. Common Russians, by and large, do not possess safe haven real money coinage in silver and gold, and rely on the most stable of all fiat money for wealth holdings. From my personal interactions, I have found that common Russians are educated and intelligent peoples, but are hyper-sensitive to fiat money fluctuations, and naturally so, having been twice burned badly by the Ruble collapses, especially after the fall of the Soviet Union. Many had their entire life savings wipe out over night by that fiat money, and they of course, blame it all on the USA. With respect to the gift of democracy, they seem to say, "money cant buy everything that's true, but what it cant buy, I cant use, I WANT MY MONEY BACK"! Most Russians blame their loss of life savings on us Yankees, the cold war victors. President Reagan's military build up broke the Russians when trying to keep up militarily. Russians, unlike most Americans, have a healthy distrust of fiat money. However, they do not generally hold real money in silver and gold coinage, as it is generally not minted is large amount by the Russian central banks only offering some specialty coins with very high minting surcharges.
Now, there seems to be a new global movement afoot, and this movement is not really understood by this author. It is an undefined confluence of subtle thinking and conduct. Notwithstanding a precise understanding of this movement, it is real, and it may give Mr. Bill Murphy's GATA following some support in the very near future. Something in the fiat monetary world is definitely changing, but what? Maybe Mr. Murphy has been on target all along. Surprisingly, the Russian central bank, in Russia having vast mine reserves, has now decided to increase its FOREX reserves, and President Putin has recently indicated that Russia's gold reserves should be increased from the current 5% to 10% or more over the next several years. But Putin's Russia still retains cultural secrecy and vertical controls as aspects of the old soviet empire in which President Putin was reared and in which he is now the de facto czar. President Putin calls for increased bank gold reserves while Russia is now stating that its gold production has dropped. Hmmm, sounds like a possible secret Yuko's confiscation. There are also rumors that other Asian banks, such as China and Japan, may increase their gold reserves from a tiny 1% of their FOREX reserves. Other world banks seem to be taking notice as well of gold trends and ballooning US debt, as Venezuela and South Africa, inter alia, have also indicated new interest in building their gold reserves. Central bank gold sales by the EU seem to be slowing as well, if not reversed, as the British exchequer, Mr. Brown, gets repeatedly slammed for selling vast amounts of British gold reserves at the bottom of the gold price in about 2000. I suspect Britain will now think twice about selling any more gold from its reserves. There is a global movement out there and something big is afoot for sure.
When looking at global trends, this novice in the gold market, who jumped in at $270 in late 2000, sees a global trend towards hoarding gold, but why? Not a stock trader, nor a gold trader, in late 2000 when gold was low, I simply figured it was a safe long term investment, not knowing any better, and did not blink during the channel up trend corrections from late 2000 to late 2005 when Gold finally entered the so-called phase II break out. But having seriously jumped in, I started to seriously review market commentary, and particularly like the differing of opinions. With gut feelings that something big was afoot, Mr. Murphy and his gang at LeMetropoleCafe.com caught my eye. An engineer and patent lawyer by profession, I have little training in gold markets, but one thing has, over the years, stuck in my mind. In about early 1980, I purchased a hand full of Krugerrands, then in vogue, at about $240/oz and sold at $290/oz, and thought to myself, good job, well done, and patted myself on the back, being so proud. When gold hit $850/oz, I was taken back and realized, I really did miss the boat during that bull run. I have learned from my mistake. With my engineering training, I am comfortable with graphs. Without an expert knowledge of the gold market, I look at the graph in generic terms. I looked at the bull run then and now in three phases, first is the bull run basing, the low linear slope up in price, now characterized as a channel bull run between 2000 and late 2005. Now I suspect there should be a high linear slope increase in price, now characterized by some as phase II, and signaled by the recent break out from the 2000-05 bull run channel. After this, in about 2008, I expect, the exponential explosion, the phase III, like the 1980 curve to $850/oz. From my limited view, and for whatever reason one may choose, it seems that gold will hit at least $2750/oz about 2010-11. I wont miss the boat this time around.
But then I take a step back, as an American, as I am torn in my loyalties, between a desire for strong US dollars and personal greed in gold. I want a golden nest egg from my children, but also want a strong dollar for a healthy economy in which my children will live. But how can I have it both ways? And so I ponder this question and seek possible scenarios from those in the know. I want my cake and eat it to. While Mr. Douglas V. Gnazzo may suggest I buy a wheelbarrow to carry my 2010 FRNs, I think I will have a better use of it then. I think that a wheelbarrow for FRNs may not be necessary, the $100,000 FRN might be printed, at virtually no cost. But, I do buy into the twin deficits that throttle the FRNs, and that, with war-hawks, bleeding hearts, and natural disasters, there really is no political end in sight to the twin deficits, at least until federal budget pay-go becomes popular again in about 2010, after the FRN then collapses, when gold hits at least $2750/oz, in my view. For most Americans, like those Russians, life time savings in FRNs will be wiped out in real value, and only then will Americans gain a healthy distrust of fiat money.
The inevitable collapse the FRN will not spell doom for the good old USA, in my view. This is the good news. The USA is the 3rd largest gold producer subject to 2010 wind-fall taxes, as in 1860 when the comstock load silver mines funded the civil war, and when the USA $20 gold coin was king in the rebel south. With increasing silver prices, the very low 117,000 million ounces in central banks can be quickly ramped up to support a global silver and gold currency, which presently exist in fact, but called as such. The USA holds 26% of world gold bank reserves, and that matches 25% of the world profits being generated in the USA. While Mr. Murphy may claim there is a cartel suppressing Gold prices, the US seems to not be a member, as Fort Knox still seems immune to goldfinger's gold suppression attacks. There is plenty of central bank gold stocks and silver mines about to support a US real money currency. That is, it seems that the world will eventually dump fiat money, and currency traders will be history, in the out years. The FRN being the world reserve currency, will be the first of the fiat money to fall from grace, as the world banks dump the dollar, trying not to be last to bail out of FRNs. The USA national debt will also be effectively wiped out by tremendous devaluation of the FRNs, a possible intended scheme by the US Government to effectively defraud bankers and savers world wide.
There is an excellent article by Mr. Douglas V Gnazzo offering a history of US bearer notes and the FRN, the former backed by silver as a real dollar, that is, real money. The US to this day still strikes $1 silver and $50 gold coinage, real money, and I was struck (no-pun intended) that the US is still minting real money, yet also prints fiat paper money, concurrently. I am always amused by the $1 and $50 stated value on my real money coinage. With the inevitable global collapse of fiat money between 2010-2015, the federal reserve may be preparing itself to wipe out the national debt by maintaining its gold reserves and the silver and gold minting to support a dual currency economy during a transition period using both the devalued FRN and real money. Governments can mint vast amount of real money in response to the fiat money collapse. Global silver stocks are very low, but that would change as old mines are reopened, and gold has been retained in central banks. Silver and gold prices will explode in the FRN collapse diminishing the minting surcharge to a trivial percentage of value. It is unknown by this writer what is the current amount of minting of real money, but there is no slow down in gold jewelry purchases world wide and it seems that real money and jewelry could be easily used in a post-fiat money collapse scenario. Las Vegas may go back to the silver dollar bet, the hard way.
The real secret may be that the USA already has another back-up currency, the $1 silver and $50 Gold eagle coinage, a real money currency. When Palladium broke down below $200/oz in December 2004, that should have been an obvious buy signal, and Stillwater Mining and Northwest Territory Mint offer excellent assayed Pd rounds. In purchasing these rounds, it was realized that the US government wont recognize these Pd rounds as savings for retirement tax deductions. The IRS will honor retirement investments in US minted silver and gold eagle coinage, and hence, the infant beginning of the necessary return to real money, in the good old USA. The US $1 silver eagles have a relatively high minting surcharge, but that pales in comparison to the 95% lost of value of FRNs over the last century, and the losses to come between now and 2010 in FRNs, and will be completely made up by necessary price escalations in silver over the next few years as silver returns to at least $20/oz and maybe $100/oz in present value.
This real money believer and USA Yankee is now convinced of an FRN collapse at about 2010 and is now screaming the bi-currency rebel yell, based on the gold up trend and recent global central bank moves and the exploding national debt. It seems that one should reduce holdings of USA FRN fiat money and hold US minted eagle coinage, with the price escalation of real money exceeding that of controlled interest rates, in our route to the FRN monetary collapse in 2010. Personal FRN debt, such as a mortgage, is not a problem as long as the debt interest rates are fixed, and the writing is on the wall for refinancing variable interest rate debt into fixed interest rate debt to survive the coming collapse five to ten years hence. That is simply common sense. But it also seems that the US is now partially through retirement recognition, and is destined to be fully, a bi-currency economy, real money and fiat money, during a transition period to only real money world wide. I can now see US banks allowing for silver and gold bank accounts with the issuance of silver and gold certificates to supplement conventional FRN accounts, similar to the Russians with their multiple fiat currency bank accounts. Mr. Gnazza will surely be pleased. As real money becomes more popular, the government will eventually get back to a quasi gold-silver standard during a transition when there is both real money and fiat money, and then to a complete global silver-gold standard in the out years. The big losers are foreign central banks holding FRNs and Americans and savers with large FRN bank accounts. The US can, with its gold reserves, provide a solid economic currency to survive the up coming FRN collapse, wiping out FRN life time savings as US citizens and foreign central banks are burned by the uncontrolled fiat money US spending. This is, of course, just one man's opinion, but I could be right. Maybe by then, I will have retired, and take up shaking $100,000 FRNs on the streets of Laguna Beach California, using my wheelbarrow, if not to infirm, to transport the necessary $1 silver eagle coins for the street exchange at $100,000 FRNs to $1 eagle.
Vie Gravarite Parusski? (You speak Russian)?
Dasvadaya Adein Dualler Billyett!!! (Good Bye One Dollar Bills)
Bi-Currency Doom and Gloom (2006)
The LaMetropoleCafe.com web page published an article entitled "US Government is Preparing for the 2010 FRN collapse" on 12/26/05, by yours truly. (Federal Reserve Note --FRN--) In that article, it was stated then that: "The inevitable collapse the FRN will not spell doom for the good old USA … This is the good news. The USA is the 3rd largest gold producer subject to 2010 wind-fall taxes, as in 1860 when the comstock load silver mines funded the civil war, and when the USA $20 gold coin was king in the rebel south." The speculation of a FRN collapse seems in the cards but with a bi-currency solution.
There was also a projection of a bi-currency economy. "This real money believer and USA Yankee is now convinced of an FRN collapse at about 2010 and is now screaming the bi-currency rebel yell". "I can now see US banks allowing for silver and gold bank accounts with the issuance of silver and gold certificates to supplement conventional FRN accounts".
However, in that article, there was not a kind word for the US central banks activities that will lead us sheep to the altar when the FRN collapses. "The FRN being the world reserve currency, will be the first of the fiat money to fall from grace, as the world banks dump the dollar, trying not to be last to bail out of FRNs. The USA national debt will also be effectively wiped out by tremendous devaluation of the FRNs, a possible intended scheme by the US Government to effectively defraud bankers and savers world wide."
In retrospect, as a loyal American, I would like defend the USA, as best I can. It was and is the US tax payers that have really paid the higher price to civilize the world through vast expenditures upon military and state department efforts and aid, from WWI and WWII and to the present day. We Americans continue to pay for that civilization, while the rest of world basically stiffs the US with little effective contribution and counterproductive self serving acts. The foreigners enjoy the benefits of globalized world trade but don’t share in the cost of maintaining and protecting it.
It has been the USA soldier on the front lines, and the sea going battleships and carriers that have lead to a "democracy century" as the USA President has recently declared. In a convenient rationalization, I do not have a problem, really, with stiffing the foreigners, as simply the being the quid pro quo for their pacifism and evils in world affairs, and want of serious contribution to global civilization. That is, stiffing the foreigners by a collapsed FRN is simply the cost of doing global business enabled by USA military might in protecting international sea lanes and trade through civilizing societies and protecting global trade.
However, I will feel so sorry for those unsuspecting Americans who will get caught with large FRN bank accounts with no other hard tangible assets upon which to survive the coming FRN collapse and the resulting financial turmoil. But, we Americans have been through depression and will rise to this FRN collapse occasion as well. We will take care of our own, as our Christian-Judeo heritage compels us to do. However, if one was smart, one would hold dollars for daily expenses, but invest in tangible assets, like real estate and particularly precious metals, the base of any future bi-currency economy, and which, would have value world wide.
The declaration of a return to real money has recently been echoed by moves by the EU, Russian, and Chinese banks. In the January 5th 2006 LeMetropoleCafe.com James Joyce tread, it was stated: "Spoke with our STALKER source this afternoon. The buzz in London in the precious metal world is: More talk among the Saudis, Chinese, and Russians of a gold backed currency … maybe two currencies. They are supposedly concerned about the zillions of dollars floating around everywhere in the world. Word is they are feeling too exposed to a dollar debacle."
As such, the global trend toward world banks hoarding of gold seems to be coinciding with the prospects of bi-currencies in preparation for bi-currency economies and ultimately to only real money economies in the out years. That transition will be firstly to real money possession and secondly to real money economies, which is inevitable, though, there will certainly be a difficult transition period.
Sure there will be deep and long lasting recessions, if not an outright depression, at that important juncture when transiting between fiat dollars and real dollars in the economy. But, we Americans are a hearty, resilient, and optimistic bunch of capitalists, and will survive just fine. Nixon will be again damn for not only Watergate, but also severing the last ties between the dollar and gold. The soup lines may appear during the real money adjustment period, and possibly called "Nixon lines", but these lines wont last long, as we transition back to real money gold and silver coinage with a robust economy and with real money foreign exchanges.
On the other side of this strong optimism, is the constant prophecies of global doom, and the end times. I am just shaking in my boots! I think this is hog-wash as perpetrated by religious zealots and mainstream sensationalism news reporting. In a comprehensive projection of global confluence, it was realized that the geopolitical forces about the world are becoming ever more interconnected and actually merging and coalescing into comprehensive moving forces toward peace and stability now and more so into the out years. Reading the NY times, you would never know that, only that, the US is inherently evil and perpetrating unnecessary wars and genocide.
The real war these days has been going on for 100 years are more and is really between the Core and Gap, and the Core is definitely winning!!! That is the great news!! Iraq is just another battle in that war. A comprehensive understanding of the global conflict, that is the Global War underway between the Core and Gap, was revealed and discussed in an article entitled "The Stabilized Global Confluence Supports a Rising Tide of USA Conservatism into the Out Years, a Christmas projection of Human Cultural Evolution", by yours truly, 1/8/05, and was published at the Far Eastern State University in Vladivostok Russia.
In significant part, this global confluence analysis states: "As world empires and spheres of influence abut each other in the information age, human cultural evolution has lead to economical and political functional rule sets that are used to maintain relative peace during interactions of a CORE of economically and politically connected countries, including Russia, China, USA, EU, Japan, Australia, inter alia, that are coalescing into increasing cooperative action to prevent perturbations shocks, such as the 9-11 attack in New York, from a GAP of disconnected empires, countries and spheres of influence, including Africa, the Middle East, and the South Pacific Island Chains, leading to continued integration of GAP countries in the CORE and eventual world peace for decades, if not centuries, to come." (Abstract, in part) The article ends with two closing paragraphs.
"I believe we are reaching a tipping point, as the wealth, population, and interaction of the CORE of cooperative countries (Russia-China-India-EU-US, etc.) exceeds that of the non-functioning GAP of disconnected countries, (Africa, Middle East, and South Pacific, and of course, the cold-war hold-over in North Korea). Of the 6 Billion on earth, 4 Billion live in the CORE in relative peace as war breaks out from time to time in the GAP. As the CORE becomes more dominate over the GAP, at some point, there is the bend in an exponential, and rouge militant countries will fall like dominoes and connect with the CORE. President Bush, or for that matter, Osama Bin Laden's 9/11 attack, may have put into motion a last and inevitable collapse of social global militancy, as we as a global people will find over-all functioning peace for decades, if not centuries, to come. Yes, we Americans are culturally eternal optimists, and I plead guilty."
"Sure it is rosy global prediction, and sure assumptions are made, but it seems that there is a natural course of human cultural evolution, in that, there was first the creation of kings with tribal rule sets from the cultivation age to the iron age, then there were great empires battling for remaining lands and conquest over others from the iron age to the industrial age, but as the great geo-political CORE of the big four abut each other, with no more room for expansion, and the eventual learning of the draw backs of global war and the benefits of collective cooperation, human kind and geo-political functional rule sets finally culturally evolve from the empires of the industrial age into civilized partners in the information age, and in the end, that is a very good thing."(Last two paragraphs) See Global Confluence: http://imcs.dvgu.ru/news/dmr/globalconfluence.html
This projection of global confluence, a world wide trend towards global cooperation and peace, has been recently re-enforced, in a article by Mr. Andre Mack at the Washington Post, on 12/27/05.
In that article, Mr. Mack makes some striking observations. "Seen through the eyes of the media, the world appears an evermore dangerous place", (Iraq, Darfur, Thailand, Bali), and that "people believe global violence is increasing". He correctly continues: "report reveals … armed conflicts … decline has continued". Particularly, "By 2003, there were 40 percent fewer conflicts than in 1992. The deadliest conflicts", "fell by some 80 percent", including genocides and mass slaughter".
This is an encouraging reinforcing development that the underway Global War between the Core and Gap is going very well indeed. So, it seems that the world in not going to hell in a hand basket, as many proclaim, but is definitely trending towards bi-currency economies in a cooperative more-peaceful global world of like bi-currency real-money economies. With a common measure of monetary value, gold and silver, the cheating world bankers will be history, or at least I hope so, once and for all. GATA will be proven correct, and hopefully some bankers will get lynched in public squares by those who's life savings were wiped out by the bankers' fraudulent schemes to control gold by selling short and loaning long while pumping vast amounts of fiat money into the economies.
In decades to come, no longer will fiat money be used to burn those unsuspecting citizens who placed so noble but unfounded trust in the world bankers. Bankers' reputations will sink to the contempt of lawyers and used car salesmen. To prepare for this futuristic bi-currency real-money economy world, a realignment of assets seems well advised, but with assurances and confidences in the prospects of a strong USA and a safe global world continuing through the out years, for decades, if not centuries, to come.
Anglos Rule The Bi-Currency World (written 2006)
In foreseeing the inevitable collapse of the US federal reserve notes (FRNs), that is, dollar bills, projected to be about 2010, and the sinking of other world fiat paper moneys in its wake, it seems that the Anglo world, and its progeny, is the best prepared. As a skeleton of old Britannia, the nations of Britain, USA, Canada, South Africa, Australia, India, and China, the core of the old British empire, are the most prepared throughout the world. In searching for gold and silver coins that are currently minted in quantity, the number is strikingly few.
Significant Current Bi-Currencies
South Africa: Gold Kuggerands since 1970.
============= Fiat Money is the Rand
United States: Silver and Gold Eagles since 1986
============= 1 1/2 1/4 1/10 Gold, 1 Silver
============= Fiat Money: Federal Reserve Note
Swiss: Swiss Franc Backed by Gold
============= Swiss Franc Backed in part by Gold
Canada: Gold and Silver Maple leaf
============= 1 1/2 1/4 1/10 1/20 oz
============= Fiat Money: Canadian Dollar
China: Gold and Silver Panda
============= 1 1/2 1/4 1/10 1/20 oz
============= Fiat Money is the Yuan
Britain: Gold British Sovereign
============= Silver Britannia
============= Fiat Money: Pound & Euro
Austria: Gold Vienna Philharmonic
============= Fiat Money is the Euro
Australia: Gold Kangaroo
============= 1 1/2 1/4 1/10 1/20 Oz
============= Fiat Money: Australian Dollar
India: Indian Sovereign
============= Fiat Money: Rupee
Except for the Anglos, the big emerging Asian duo, China and India, Britannia's progeny, and the fortress nations of Switzerland and Austria, renown for their gold-solid, independent, and confidential banking, very few other countries are prepared for the sustained minting of the alternative real money in large quantities. Only a few major world central bankers have governmental mints running around the clock to produce in quantity standardized quality gold and silver coinage, that could used as a monetary base, and must be used as a monetary global standard, in the event of a global fiat money collapse. What is it that the Anglos, the emerging Asian duo, and the mountain fortresses know, that the rest of the world, does not know?
Certainly the Swiss have retained their independence from world conquerors, no doubt learn in earnest by their neighbor Austria post WWII. However, the Swiss and Austrians lack substantial gold mine production, as being unprepared. Russia and China, the darlings of the old communist world, have a bone to pick, but only of late seem to understand the full complexity of the global banking system in the style of those western capitalists with their golden hoards. Both Russia and China are making noises to increase their tiny gold holdings in direct fear of a dollar collapse, as being unprepared. Indians have always had a love of gold and are huge importers of gold as having few productive mines. India at least has minted coins, though lacks the gold mine production and bank gold stock piles, and to this day is the number one importer of gold, as being unprepared.
Sure, many countries do have specialty minting of commemorative coins from time to time, but not year after year production of standardized minting with face valued denominations, and in substantial quantities, with reliable gold supplies from domestic mines. Sure, there exists in collections around the world large quantities of modern, old, and ancient coinage, for trade as highly prized collector items. There would be problems with correlating correct values between various modern, old, and ancient coins and commemorative coinage, as being unstandardized for effective recurring circulation use in any economy. When the FRN crashing sounds occur, governments should be prepared to react quickly, and massively pump into their respective economies, like a instantaneous multiple shotgun salvo, large quantities of standardized gold and silver coinage, the only money then really trusted by all with recognized values for commerce, so as to smooth the economic recessions and trade collapses.
Many pretty ladies will be hard-pressed to give up their wedding rings and gifts of love, when really that is all they have left to buy food and essentials of life for their children. Many rare coin collectors will also be hard-pressed to give up their life long held treasures, unless starvation is staring them at their gaping mouths. Having been burned, it seems it would take years before anyone would trust gold and silver certificate bearer notes, purportedly issued with sincere central bank promises, to be truly backed by gold and silver. Standardized real gold and silver coinage would be readily accepted, with no other real choice, to conduct wide spread trade and to buy necessary goods, providing once and for all a global currency of undeniable defined value.
The problems with jewelry is the scams that would occur when trading in the 10K, 14K, 22K fine jewelry, when monetary scales are crookedly fixed against them. Trickery can occur on the other side of that exchange as well as witches and devils try to pass off gold plated metal for the real thing. I doubt the poor individual Indian would gladly surrender his or her only little treasure on earth to repair the Indian economy that ain't so good anyway, or the Chinese to readily surrender their hard earned modest savings. The problem with old and ancient coinage is the ruination of the numismatic value to the collectors' great loss as Caesar's face become smooth in a pool of melted metal. Joshua will certainly reappear from the mother load mines, yet again, and try to pass off gold plated coins as the real thing to both store clerks and local refiners, when just joshing. There would be a significant problem in regulating up-start refiners operating out of local garages, just trying to make a real buck, while pocketing a few extra grams here and there, unbeknownst to those departing with their last ounce of real monetary wealth. The problems of transition from a fiat money economy to a real money economy would be vast in scope and numerous in fraudulent schemes, and could only be solved by governmental standardized real money coinage in wide circulation usage.
To minimize the economic calamitous chaos and the depth of the severe recessions and depriving depressions, in the event of global fiat money collapse, governments and their respective central banks through their operating mints, must hit the ground running with a massive world wide accepted standardized backup currency in gold and silver coinage. To do this, there must be held vast gold and silver reserves with up to speed and fully operating mints and with continuous supplies from existing operating domestic mines. But there are few countries with such necessary hoards, and even fewer with such additionally operating mints these days, and even fewer still with the additionally required operating domestic mines.
As such, the world by and large, with so many different countries and respective currencies, is totally unprepared to meet the challenges of an instantaneous switch to real money when the fiat moneys collapse. In the Anglo world, the US and Canada, with their intertwined economies, appear to be the best prepared, with South Africa and Australia not so far behind, and with Britain following up in the rear having recently sold vast amounts of British gold at the 20 year low prices in about 2000, thanks to the exchequer Mr. Brown, especially in view of little mine domestic production. Australia and Canada might come to Britain's aid, of course, feeding gold stocks to British mints in order to save the queen. After this, the rest of world seems very ill prepared, in deed. Yes, there are hoards of jewelry and old coinage in the hands of private citizens, but when a government prepares for a total collapse of fiat money, there would be no real substitute for a genuine standardized freshly minted US Eagle, Canadian Maple Leaf, Chinese Panda, British Sovereign, Indian Sovereign, or a South African Kuggerand.
But what is it that the Anglo world seems to know that the rest of the world does not? It could be said that the production of real minted money these days is merely a reflection of the amount of gold production. South Africa No.1 with the Kuggerand, Australia No.2 with the Kangaroo, United States No.3 with the Eagle, China No.4 with the Panda, Russia No.5 with none, Peru No.6 with none, Canada No.7 with the Maple Leaf, being the top primary examples. China and Russia are now asserting that the gold component of their FOREX reserves should be increased, though this would probably occur through taxation and confiscation of their relatively large mine production, rather than open market purchases at high prices, which taxation and confiscation will, nonetheless, drive gold prices even higher by increased gold supply deficits, as we reach the day of the fiat money debacle.
Russia at one point, under the ruling czars, had the largest gold stores in all of Europe, but that vast hoard has apparently been squandered by the Bolsheviks and Communists trying to dominate the world. Its recent palladium hoard has been wiped out when used as collateral for a defaulted Swiss bank loan. Modernly, this vast Russian gold hoard was no doubt pocketed by ruling politburo chieftains, commissars, and greedy powerful oligarchs. Peru apparently has neither the desire to compete with other world mints, nor has the economy to justify the investment into quality mass minting facilities for the production of gold and silver coins. Russia has only a mere 500 tons and China has only a mere 600 tons of gold reserves, and unless they enter the gold purchasing open market in a big way, or confiscate domestic mine production, seem to be the laggards in preparedness among the big producers. It appears then, that the Anglo world is definitely more prepared than others world wide governments to meet the challenges of a global collapse of fiat money, which would be lead by the demise of US federal reserve note.
This Anglo dominance in preparedness seems almost calculated. The Canadian economy is inextricably tied to the US economy by virtue of its location on the North American continent and its extensive border with the USA. As Prime Minister Blair has led Britain behind the USA into Iraq, Britain seems destined to follow in the US foot steps, in all areas, as Sir Winston Churchill admonished his fellow citizens to do many years ago. South Africa and Australia seem to be similarly situated, though South Africa broke from its Anglo ties with its current anti-apartheid regime, but just happens to be blessed with vast gold reserves and production, and the Kuggerand operational minting left over from their dethroned white taskmasters there. Britannia's India, as a vicarious Anglo state, seems similarly inclined, though lacks substantial mines and gold stock piles. Britannia's China, also as a vicarious Anglo state, seems similarly inclined, though lack huge existing gold stores.
Even though Canada, Britain, Australia, and certainly South Africa have large peace and anti-war political constituents, when it comes to money, they all would seem to be on the same team and would fall in line in self interest, and jump on the real money band wagon, accelerating the fiat moneys into an early grave, as the rest of world subsequently catches up and jumps on in a second wave. While I am not being so bold as Mr. Murphy's GATA gang to propose for sure that there is a cabal involved, it seems highly coincidental, and, that it could have been planned. Notwithstanding a cabal in the Anglo gold producing world, it certainly seems that the Anglo world is the best prepared for the fiat money collapse.
In the event of an intentional or unintentional collapse of fiat moneys, the USA and her Anglo sisters would certainly survive a global fiat collapse better than most. While wars are often used to place an aggressor nation above others in power, control, influence, and wealth, the current progress of human cultural evolution is to avoid wars were possible and cooperate together for the common good. It seems then, that an alternative to war has been found, this time around, as the Anglo world could do the same by placing itself as the financial rulers of the world in a globalized world economy, in a war free global community, without firing a shot, by simply collapsing the FRN through uncontrolled fiat money printing while retaining backup real gold and silver coinage sustained production.
A cartel is a group of horizontally connected entities having horizontal agreements to affect commercial prices. Cartels have been outlawed by anti-trust and unfair competition laws in the USA as being inherently evil in a free market economy that relies on fair competition and survival of fittest to maximize productivity for the over all increase in wealth and living standards of the citizenry. However, there are also common laws that indicate that the "king can do no wrong", and governments are typically immune to anti-trust laws. Governments can hide behind governmental immunity to perfect pricing schemes that would otherwise throw banksters and crooks in prison. Governments get a free pass, because they are really controlling prices for our own good.
We all understand OPEC, a cartel of a coalition of horizontally connected oil producing countries, who meet regularly, to set and fix, and reset and refix, production levels, so as to maintain stable oil prices, so as to neither shock the world into economic depressions nor provide motivations to eliminate oil as the world premiere energy source. As such, the production level floats up and down over time. OPEC is immune to US anti-trust and unfair competition laws. OPEC is a true cartel, operating for stated specific purposes. We all get that.
Now comes the Gold Cartel, lead by the ECBs to set a limit on the number of tones of gold that can be sold by member countries during a period of years. Hence, there is a horizontal agreement between horizontal entities to fix sell tonnage levels to affect price, which entities also enjoy governmental immunity that would otherwise be considered inherently evil and unlawful. In the laws of conspiracy, one need not actually do the deed, but only agree to the scheme to be carried out. Here, the WAG2 agreement is, by acronym, a Washington DC agreement, and apparently, Uncle Sam was in there pitching for the agreement, which has been carried out. As such, Uncle Sam must be considered a co-conspirator, but also subject to governmental immunity, even though not actually signing the agreement, which conspiracy to affect price becomes more obscure to the average Joe on main street USA. The Gold Cartel minimally includes the ECBs and Uncle Sam, to affect gold prices.
But what is the real nature of the Gold Cartel? Lets take an honest look at it. The terms are that the gold bullion selling must be limited to, NO MORE THAN, 500 tones sold a year. Now, when one sells gold what happens to the price of gold? Yeah, I know this is complex stuff, but bare with me. When you sell gold, the price of gold goes, hhhmmmm, DOWN!!! As such, on its face, the WAG2 is an agreement to prevent the price of gold from falling, that is, limit the down side price of gold. No other conclusion is possible. And this makes superficial sense as the ECBs have the largest collective hoard of gold bullion in the world, most notably, France, Italy, Germany, England, et al. Of course, selling has reduced their stocks over the term of the agreement.
So, the Gold Cartel is in the apparent business of controlling gold prices, so they wont GO DOWN, thereby, used to support the price of gold up, protecting the value of the golden hoards. This makes complete sense. Now lets look at how that gold selling has actually affected prices. It appears that the selling is concentrated and most active, when the price of gold goes up. The most striking example of this was the 40 ton smack down of the gold price in May 06 when gold was launching up in its second bull channel trend. That selling, to smack down a rising gold price, is completely contrary to the apparent plain-language purpose of the Cartel's WAG2 agreement. When prices are going up, don’t sell, but hold, if you want to retain value in your portfolio. Apparently, then, retaining value is not the real purpose behind the gold sales. Well, maybe the selling at high prices is to gain profits? British Exchequer Brown, selling tons of British gold at the bottom of the gold price, did not seem to be profit or wealth retention oriented sale, now was it? The selling of gold is matched to the rising price of gold, and hence, in fact, the WAG2 has been used, in effect, to suppress gold prices.
It was learn during the Nixon era, that price fixing causes more problems that it solves. Here, the suppression of prices have tanked gold exploration, resulting in short suppression, but long term shortages, that in the end, will rocket gold prices sky high. It is ridiculous to suppose that the selling of gold to suppress prices was to take advantage of long term sky high price hikes, when you have already sold your gold. Hence, the cartel is not functioning to create long term sky high gold prices.
On the face of it, it appears that the cartel WAG2 is used, contrary to the plain language expected use, not to support gold prices, but to suppress gold prices. If the sale of gold is not used to prevent a collapse in gold prices, is not used to retain wealth, is not used to capture profits, is not used to take advantage of long term sky high prices, what possibly can the WAG2 be used for, other than to suppress gold prices as indicated by the timing of the gold sales? None.
Here comes Uncle Sam's role, the effective obscure ringleader of the cartel, proudly having the "Washington" formal name on WAG2. Good old Uncle Sam is also the leader in fiat printing, the pervasive injector of fiat money into all foreigner's forex reserves, as the world's reserve currency. What motivation could there possibly be, to suppress gold prices, when that relic has been deemed publicly as irrelevant? The average Joe on main street understands inflation and gold, despite the government pronouncements of an irrelevant relic. The number of tons sold is actually timed to suppressed gold prices, which gives average Joe and others around the world, a comfortable feeling with the sound value of fiat while also having a tendency to calm markets, which are the stated public policies of the government, that is, to keep a strong fiat dollar.
When you look at the uses of WAG2 objectively, the Cartel does not sell gold using periodic adjustments to protect against both too low and too high gold prices, like OPEC and the oil price, but rather is used solely to suppress high gold prices consistent with the stated purpose of Uncle Sam, to maintain a strong dollar. When you look at the effective uses of the Cartel WAG2, the use has been to suppress the rate of increase in the gold price, which supports the fiat dollar, to Uncle Sam's delight, and well as supporting the fiat of the ECBs. The Cartel WAG2 is not an agreement to support gold prices, as indicated by its plain language terms to limit sales, but rather an agreement, as effectively used, to suppress gold prices, and as such, Uncle Sam's gold cartel, is a farcical Gold Cartel, the sham cartel.
Live in freedom, free from the INFLATE AND ROB of government printing presses. The 5 pillars of freedom: God Gold Guns Land Vote. Fiat paper money, used by government to enslave us all as tax mules or dependents, aint included in freedom from government. US Treasuries are at 0.1% ANNUAL INTEREST and will be kept low for some time. Its called, for your information, negative real interest rates. The actual (not government manipulated) rate of inflation is 10% +. Which means, my dear friend, you are losing 10% of your value of money in the bank, each year.
Why do you think people are piling into gold and it is rising on a 10 year exponential curve? The value of paper currency money is dropping fast, intended by the FED bank. They would need to jack up interest rates to 10% to counter the loss in value of paper money, but cant, politically, as that would tank the non-existent recovery, but is supposedly (another government lie) a recovery.
Housing is dropping another 20% in value. Which is huge 1930s style deflation combated by the FED injecting cost push inflation, printing money, trying to inject liquidity and inflation, and its working somewhat. However, GDP, measured by $(x)velocity of money turn over is not working, as there is no longer any bang for the printed bucks, and hence, no recovery, only inflation by money injected, and depression of certain government manipulated asset values (homes), except liquid real assets, (gold/silver, the barometers of financial health).
Hence, the FED is trying to induce inflation, so that folks will not sit on money, but invest it into real assets (housing to stop the slide), to combat deflation, which could possibly spiral out of control and send us all into a depression, which must necessarily occur in order to deleverage 2000T$ of OTC (over the counter derivatives), bad-bets the banks have made, gambling with the people's money, and needing repeated bailing out. We will eventually get to that necessary depression and implosion of the US dollar, its happening before your eyes. You have to stop thinking in black/white, yes/no, on/off, start/stop, but OPTIONALITY, in that, there are many moving forces affecting money flows. You have to stop believing the TV talking-heads giving you the rosey scenario and government sources concerning the economy and money.
Currently, the government is over printing, intentionally inducing inflation, hoping to combat deflation in housing, but as soon as QE (quantitative easing) FED purchasing of US debt, "money printing" injections, thereby monetizing debt, stops, and the liquidity dries up, the markets/economy takes yet another huge hit, so they wont, and yet, can not raise interest rate, to suck up the liquidity if inflation is achieved, which high interest rates would tank the economy as well. Hence the FED BANK and US Gov is trapped, lose if they provide liquidity (and steal from us all by INFLAT AND ROB) and lose if they jack up interest rates, and tank the economy down even much more. Hence, they will print print print until the dollar is totally toast, as we jump from inflation (rising prices) to hyper-inflation (loss of confidence) and the Wienmar Republic of 1920s, style of the ultimate crash of the dollar and its total demise. Dont be stupid and believe what you are told by government, as they kick the can down the road trying to stave off disaster, by habitual money printing, brought about by socialist currency printing beyond means to enslave us all as tax mules or dependents.
The root cause of this economic disaster are SOCIALISTIC spending and the use of printable fiat money, and hence, EVERY FIAT CURRENCY ever used in history eventually ends up in the toilet as toilet paper because politicians can not control themselves, (VOTE for me and I will give you the goodies), to cement my political power in the nanny state and a multitude of folks dependent on government. Capitalism (read competition in markets), Decentralized political power (read competition between the states) and the use of REAL MONEY (non-printable currency) prevents all of this, and it makes people free from government which governments always seek to enslave us all by politicians and government, as tax mules or dependents.
The colonial founding fathers knew the evils of centralized political power (King George and his taxes), paper fiat currency (that aint worth a continental), and prescribed in the US constitution a REPUBLIC of states and gold/silver coinage, to keep us free from centralized totalitarian government, but, over the last 110 years of political pandering (vote for me, and I will give you the goodies), the government has created the means to concentrate power in DC, through the use of the FED BANK (printing press), Income Tax (THE TAKE), fiat paper money (having no intrinsic value), and the welfare state (THE GIVE), and hence TOTALITARIAN DEMOCRACY, where the people actually vote for the enslavement of us all, contrary to founding father principles. I seek to abolish the FED BANK, FIAT PAPER CURRENCY, INCOME TAXES, and ALL FEDERAL SOCIAL PROGRAMS, to dismantle 80% of the federal government, and return to us all, freedom from government.
Gold Bug Nova Slang Parlance
(In order to fully understand the satire, you must have knowledge of the bullion world, for example, a "monster" box is a green/red case from the US mint containing 500 "rounds" of real money coinage)
Just in case you aint hip to the latest slang sweeping the nation, thought a list, to set your mind straight, might be in order.
Crimex: The NY Comex exchange
COT: Commitment of Thieves
Banksters: Wall Street ATMs Paying Out Obscene Bonuses
Greedsters: TBTF TBTJ Bullion Banks Flushing Traders, Crimex Rigging Selling Traitors and Undue Influencers
Front Running: Market ordering signals to gold cartel members for timed group rigging of bullion markets.
Holy Spinners: US Corrupt Politicians and Farcical Habitual Campaigners
Black Robe Reapers: US Corrupt Judiciary and Plain Language Interpreters
Blue Skies: USSA National Debt, USSA Fiscal Budget, Credit Card Debt, Unemployment Lines, Household Debt, Credit Card Rates, Banksters Fees and Workers Compensation
Double Dutch Bus: The Honorable Legal Profession Seeking Currency At All Costs and full of Ethically Driven Shotgun Claim Jumpers
Sharks: Self Interested Litigators with Clients Seen Coming and Despicable Dispute-Resolution Licensed Monopolists
Smear Merchants: Main Stream Media Anchors profiting on Libel and Slander
Gaucha Pundits: Communists profiting off Innocence and Harmless Errors
Contradictions: Republican Party and Republic Restoration, Democratic Party and Voter Fraud, Land of Free and Totalitarian Government, and, Real Money and Paper Money
Monetary Inflation: Printing Presses, FED Balance Sheets and QE to Infinity.
Price Inflation: Printing Presses, FED Balance Sheets, QE to Infinity, Bullion Price Discovery, and USSA Employment
Currency Warriors: Paper Printers, Neighborhood Beggars, Currency Manipulators, Trade Warriors, Domestic Subsidisers, Deficit Spenders, National Debt Raisers and Bond Vigilantes.
Intrinsic Value: Gold Money, Silver Money, Constitutional Money, Real Money and Labor Added Value Commodities Money
Inherent Value: IRS Tax Money, Paper Money, FRN Money, Evasion Jail Time Money, Monopoly Money and Con Game Money
Commander in Chief: Totalitarian Socialistic Fascist Racist Golfing Vacationing Farcical-Habitual-Campaigner
Fascists: Campaign Contributing Banksters, Undue Influencing Greedsters, USSA Senate, USSA Commander in Chief, USSA Judiciary, and United Socialistic States of America
Enforcers: Totalitarian Henchmen, MSM Pundits, Press Secretaries, USSA Senate, Panzer Corps, Lock Down Wardens, USSA Police State and DHS
Evil Empire: Banksters and Greesters, Black Rope Reapers, and Pandering Political Machines.
Ponzi Coupons: Irredeemable Federal Reserve Notes
Taxpayer Gifts: ZIRP for Greedsters and QE for How Now Dow Cows
Fraudsters: Targeted Inflation Rate Banksters, Holy Spinners, Paper Printing Banksters, and Naked Short Selling Greedsters
Honest Money: Freedom Fighters, Constitutional Money, and US Minted Gold and Silver Coinage
Mouseketeers: US Governments Agencies, Justice, FED Bank, and CFTC
Totalitarians: USSA Government Administration, DNC and RNC
Totalitarian Tools: IRS RICO Thugs and FRN Paper Printers
Bullion Riggers: John Pierpont Manipulator and Hideous Sperpentine Bozo Clowns
Puppeteers: Goldman Socks and Tinananmen Squares
Enslavers: IRS, RICO Thugs, Pick Pocketeers, Privacy Spies, Highway Robbers, USSSA, USDA, Poor Entrappers, Circus Masters, and Bread Throwers
Gold Bugs: Freedom Lovers, Turdites, Le Menu Readers, Austrian Economists, Real Money Believers, Plain Language Constitutionalists, Republic Restorers, Libertarians, and Bonnie Blue Flag Waivers
Paper Pushers: Central Bank Currency Printers, Kenynesian Economists and Debtor Prison Wardens
One Percenters: Greedsters and Banksters and Diamond Backed Snakes and She Head Madusas
Ninety Nine Percenters: Tax Mules and State Dependents
Monsters: Freedom Fighters Locked and Loaded with 500 Rounds Each
Pump Machines: How Now Dow Cows, Paper Printers, and Feel Good Be Happy Crowds
Printer Credits: TARP ZIPR and QE1 QE2 QE3 QE4 QE5 QE6 QE7 QE8 QE9 QE10 to QE-Infinity
Extend and Pretend: Green Shoots, Kick the Can, Robust Recovery, USSA Manufacturing Dominance, QE-Infinity and USSA Government Statistics
Employment: Participation Rate Participants, Couch Potatoes, Bench Sitters, Part Timers and USSA Government Statistics
Real Rates: Real GNP Kaplop RORs and Bonds Real Valued Added RORs and Saving Deposit Negative Interest Rates
Enlightened Electrorate: Ninety Nine Percenters, FRN Bond Holders, FRN Savers, Stagnant Joe Six Packs, and Busted Moms and Pops
MOPEd Dopes: USSA Statistics Believers, Enlightened Electrorate and Foolish Economists
Extremists: Freedom Lovers, Gold Bugs, Freedom Fighters, Plain Language Constitutionalists, Libertarians, and Old Glory Waivers
Gang of Four: WW and the Printers and Thugs, FDR and the Raw Deal, LBJ and the Corrupt Society, and BHO and the Ponzi Scheme
Rat Race: One Percenters Hiding Loot Off Shore, Bahama Yacht Sailing Greedsters, IRS Agents and FRN RICO Thugs
District Courts: Medical Malpractice Lotto Parlors and Illegal Alien Swearing-In Chambers
Hue and Cry: Tax and Spend, Take and Give, Inflate and Rob, Incentivize and Control, and Socialize and Corrupt
Slogan: Vote em Out or Take em Out, for a Free Lunch
Problems and Solutions
Problems: Greed, Socialism, Totalitarianism, Fraud, Immigration, Fascism, Electioneering, Greed, Socialism, Totalitarianism, Fraud, Immigration, Fascism, Electioneering, Greed, Socialism, Totalitarianism, Fraud, Immigration, Fascism, Electioneering, Greed, Socialism, Totalitarianism, Fraud, Immigration, Fascism, Electioneering, Government, Government, Government, Government, Government, Government, Government, Government, and More-Government, To-Much-Government, and Way-To-Much Government.
Solutions: Abolish all Federal Social Programs, Federal Pay-and-Forget Sales Tax Exclusivity, State In-Rem Property Tax Exclusivity, Real Gold and Silver Coinage Money Exclusivity, Pay Off All Federal and State Present and Future Obligations with 100T FRNs, State Social Safety Nets, Out Law Federal and State Bonds, Out Law Federal and State Debt, Out Law Federal and State Fiscal Deficits, Abolish Paper Money, Abolish Federal Reserve Notes, Redeem FRNs at more than $1,000,000.00 per gold ounce, Abolish the Federal Reserve System, Reward Productivity, Penalize Unproductivity, Free the People From Government, and Restore the Republic.